Research on the Structural Characteristics and Influencing Factors of Digital Service Trade Networks in RCEP Member States

Xiaole Deng (), Fang Zhang, Shuyi Lin and Wei Qiu
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Xiaole Deng: School of International Economics and Trade, Xinjiang University of Finance and Economics, Regional Economic Cooperation Research Center between China (Xinjiang) and Central Asia, Urumqi 830012, China
Fang Zhang: School of Economics and Management, Xinjiang University, Urumqi 830046, China
Shuyi Lin: School of International Economics and Trade, Xinjiang University of Finance and Economics, Regional Economic Cooperation Research Center between China (Xinjiang) and Central Asia, Urumqi 830012, China
Wei Qiu: School of Economics, Xinjiang University of Finance and Economics, Urumqi 830012, China

Sustainability, 2024, vol. 16, issue 23, 1-22

Abstract: Using the digital service trade data of RCEP member countries from 2006 to 2021, this study analyzes the structural characteristics and network centrality of the overall and segmented industry trade networks, applying social network analysis based on social network theory. The results show that the overall and segmented industry trade networks of RCEP member countries have exhibited a gradual increase in network structure stability, accompanied by the emergence of pronounced ‘small-world’ characteristics; Singapore and Japan are at the center of the network. Moreover, the quadratic assignment procedure (QAP) model is applied to explore the factors affecting networks based on digital service trade data in 2006 and 2021. We established that institutional distance and geographic distance act as impediments to the development of trade in digital services in RCEP member countries; conversely, common language facilitates its development. For two countries with more similar levels of economic development, it is easier to establish trade links and increase trade value in sectors such as insurance and pension services, and it is also easier to establish trade links in industries such as communication, computer, and information (ICT) services, but the effect on trade value is not significant. For two countries with more similar levels of digital infrastructure, it is easier to establish trade links and increase trade value in industries such as financial service, and it is also easier to establish trade links in industries such as insurance and pension services, but the effect on trade value is not significant. In response to this study’s results, we propose five recommendations to enhance the development of China’s digital service trade.

Keywords: RCEP; digital service trade network; influencing factors; QAP (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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